Brexit could cost accountancy firms £6.4bn in lost fees

THE UK’s decision to leave the EU could cost accountancy firms as much as 5% of revenue by 2021 as their chief financial and professional services clients are hit by the effects of Brexit, IRN Research has found.

According to the research consultancy, the main negative impact of Brexit will be felt between 2016 and 2018 because of the uncertainty around the future of trade relationships with the EU.

In the report, IRN laid out two scenarios for the future of the UK economy outside of the EU. Under a World Trade Organisation deal by 2021, the turnover of accountancy firms over the 2016-2021 period will be £6.4bn lower than it would have been without Brexit. Under an European Economic Area style deal it will be £4.7bn lower.

In response to Britain leaving the EU, KPMG has appointed a head of Brexit as it looks to set governance and processes in place to deal with the ramifications of the UK’s EU referendum vote.

The UK’s top civil servant has also held talks with KPMG and EY as part of efforts to prepare for Brexit. Britain is seeking to second consultants to boost a civil service with almost no experience of complex trade negotiations, and Sir Jeremy Heywood has held talks with the Big Four firms as he prepares for a negotiation, Brussels.